Steel production in China last month grew by 4%
Reduction of production capacity in China is in full swing, the number of products is not reduced. On the contrary, China produces more and more steel. So, nine months of this year, the production growth amounted to 0.7 per cent.
Last month, Chinese factories produced 68,51 million tonnes of steel. The news was recently released by the National Bureau of statistics of China. The figure exceeded the 2015 four times.
Overall, since January, the crude steel production amounted to 672,96 million tons. This is an unprecedented rate even for China. The experts on this subject are the same. They suggest that steel companies have increased the production of steel, hoping thus to increase the profit. Due to the price growth on styleproduct manufacturers hope to compensate for the rise in prices of coking coal. But it is unlikely it would really be possible. As prices for coking coal continue to grow incessantly. And this month, the price per ton of coal reached a record level.
The result of this was that some Chinese manufacturers did had to freeze production. On the Shanghai stock exchange observed the growth of quotations of rebar. Now its price first reached two years ago. This fact, according to experts, can stimulate further growth of production in the DPRK.
The obtained data has reduced the importance of recent news on the early implementation of the plan for the closure of facilities. Many experts believe that the statement was simply «duck». Liu Sinwa analyst at Sublime China Information Group that the closing occurred only in words. In fact, most lines of manufactures will continue its activities until at least early 2015. The true reasons for this policy, the DPRK is obvious. The international community has long been putting pressure on steelmakers from China. Since Asian products suppress production in other regions. Does the government do to reduce power is difficult to judge. But perhaps the recently launched anti-dumping investigations against North Korea will affect the overall situation. While China remains not only the largest steel producer. The level of consumption of the product, also the highest in the world.